China Mobile originally planned to procure 5-mode (supporting TD-LTE, FDD LTE, TD-SCDMA, WCDMA, GSM) and 10-frequency band smartphones but has decided to reduce the format specification requirement to 3-mode (TD-LTE, TD-SCDMA, GSM) models for 2014 procurement, and this is expected to render China-based IC design houses and smartphone vendors advantageous in competition for the procurement, according to Taiwan-based supply chain makers.

　　The originally planned procurement of 5-mode smartphones was to help internationalize TD-LTE and promote development of multiple mobile communication technologies, the sources pointed out. However, China Mobile hopes to launch inexpensive TD-LTE smartphones, including models priced at about CNY1,000 (US$165), to quickly promote its TD-LTE mobile communication services and therefore has to lower required specification from 5-mode to 3-mode, the sources indicated.

　　In case of 5-mode models, there will be little competitive room for China-based IC design houses because they are technologically weak in FDD LTE and WCDMA as compared with international competitors, the sources noted. But China-based IC designers are relatively competitive in TD-LTE and TD-SCDMA, the sources indicated.

　　It is estimated that more than 50-60% of 3-mode smartphones to be procured by China Mobile in 2014 will be models equipped with China-developed processors and/or offered by China-based vendors, the sources pointed out.